Why Indonesian Government Refuse Bitcoin While Ticked Abroad?

Bitcoin is getting more support in the worlds. A number of countries decided to accept it as currency and commodity. As a result, more and more agencies and companies are receiving Bitcoin.

Not long ago, the world's largest derivative exchange operator, CME Group, said it would sell Bitcoin Futures on December 18, 2017. Bitcoin Indonesia CEO Oscar Darmawan said the policy boosted confidence among market participants.

Therefore, Bitcoin demand is increasing, he said when contacted on Saturday, December 2, 2017. Bitcoin's current price reaches IDR 140 million. Oscar noted this afternoon the price even reached IDR 158 million per one Bitcoin.

Countries that have received Bitcoin include Japan and America. In both countries, Bitcoin's liquidity is very high because it is used as currency and commodities traded. Denmark, Finland, and South Korea are also countries that accept Bitcoin.

In Indonesia, Bitcoin is only applied as a commodity because its use as a means of payment is prohibited. Bank Indonesia has issued regulations prohibiting the provision of financial technology, e-commerce, and payment system service providers using and processing virtual currency.

Bank Indonesia Governor Agus Martowardojo said the transaction with the currency has a high risk. "Some of the risks are potentially used for money laundering and terrorism financing," Agus said at the annual meeting of Bank Indonesia at JCC, Jakarta, Tuesday, 28 November 2017 night.

The Investment Alerts Task Force urges people not to get involved in the purchase of virtual currencies like Bitcoin. Task Force Investigative Chairman Tongam L. Tobing said there are two characteristics of entities conducting Bitcoin transactions. First, an entity that stands as a marketplace or a meeting place between a buyer and a virtual currency seller. Other entities offer Bitcoin sales as an investment.

According to Tongam, this second entity potentially harms the public. Such entities often offer Bitcoin investments with unreasonable returns. Based on the cases that Sagtas Waspada Investments ever handled, there are entities that offer profits of up to 5 percent per day.

Tongam said Bitcoin investments or other virtual currencies also do not bring benefits to the country. "This is not an investment that is expected by the government," he said. Bitcoin's investment results are considered not to be able to help the government's development program.